Matahari, Ramayana Report First Half Income Increase
Tito Summa Siahaan
Matahari Department Store and Ramayana Lestari, two of the country’s biggest department store operators, reported an increase in net income in the first half of this year.
Retailing business in the Southeast Asia’s largest economy continued to show strong growth, driven by persistent consumption by the country’s consumers.
Net income at Matahari Department Store rose almost ninefold to Rp 157.46 billion ($17 million) in the January-June period from Rp 18.21 billion in the same period in 2011. Sales rose 21 percent to Rp 1.24 trillion, while cost of goods sold climbed 18 percent to Rp 757.17 billion, the company said in a brief prospectus in Investor Daily on Monday.
CVC Capital Partners bought a 90.76 percent stake in Matahari Department Store from Matahari Putra Prima for Rp 7.2 trillion. The transaction was concluded at the end of September last year.
Matahari has 104 stores spread across Indonesia selling more than 28 different fashion brands.
Ramayana Lestari Sentosa, another small fashion retailer, said its net income rose 39 percent to Rp 102.61 billion in the first half from Rp 76.17 billion in the same period a year earlier.
Sales for Ramayana increased 14.76 percent to Rp 2.39 trillion, while the cost of goods sold rose 16.02 percent.
Ramayana posted a 1,020 percent increase in other operating revenue to Rp 20.07 billion, suggesting that the retailer’s decision to diversify by constructing stores to acquire rental fees had started to pay off.
Shares of Matahari were unchanged at Rp 2,500, while those of Ramayana were flat at Rp 1,250 at the Indonesia Stock Exchange on Tuesday.
Ramayana’s shares have gained 77 percent since the beginning of the year.